Senate Banking bill takes aim at Fed, GSEs, mortgage rules

WASHINGTON (Reuters) - The Senate Banking Committee on Tuesday released a draft of its regulation relief bill, which proposes easing rules for small banks, limiting restrictions on mortgage requirements and restructuring the Federal Reserve and other financial regulators.

The bill also proposes changes to Fannie Mae and Freddie Mac and addresses concerns raised by the insurance industry. Shelby's staff has set a vote on the bill for May 21, amid opposition from the committee's top Democrat.

Among the draft's proposals are:

- Requiring the Fed to evaluate bank holding companies with more than $50 billion and less than $500 billion in assets for systemic designation. All banks above $500 billion in consolidated assets, as indexed for GDP growth, will be subject to an automatic systemic designation

- Shifting from the Fed Board to the Fed's policy setting committee the authority to set the rate of interest on banks' reserves held at the Fed

- Requiring the President of the Federal Reserve Bank of New York to be appointed by the White House and confirmed by the U.S. Senate